Last Minute: Expected FED Minutes Announced! Here are the Details and First Response of Bitcoin and Gold!

• Several participants supported a 50 basis point increase in interest rates.
• Respondents said that restrictive monetary policy is necessary until the Fed is confident that inflation will fall to 2%; they added that this process may take ‘some time’.
• All participants agreed that further rate hikes are needed to meet the FOMC’s employment and inflation targets.
• All participants supported the further reduction of the Fed’s balance sheet within the framework of the current plan.
• All participants agree that further rate hikes are needed to meet the FOMC’s inflation targets.
• Several participants supported a 50 basis point increase in interest rates.
• Respondents said that restrictive monetary policy is necessary until the Fed is confident that inflation will fall to 2%; He added that this process will “probably take some time”.
• Respondents said uncertainty over the economy, job market and inflation outlook was ‘high’.
• All participants preferred to further reduce the balance sheet under the current plan.
• Respondents saw upside risks to inflation, including the reopening of the Chinese economy and Russia’s war in Ukraine.
• Participants stated that the uncertainty regarding the economy, labor market and inflation outlooks is high.
• Participants stated that the risks to the economic outlook are on the downside.
• Respondents saw upside risks to inflation, including the reopening of the Chinese economy and Russia’s war in Ukraine.
• Some respondents said that the prolongation of the US borrowing limit process could pose ‘significant risks’ to the financial system and the economy.
• Respondents said the job market was ‘too tight’, with demand for labor exceeding available supply.
• Respondents said that inflation has decreased in the last three months, but they should see more progress.
• Participants stated that the continuation of the tight labor market will put upward pressure on inflation.

After development of bitcoin His first reaction was:

On the ounce gold side, although there was no sharp decline, there was some decline. An ounce of gold is currently trading at $1830.

The Fed Last Raised Rates By 25 basis Points

The January 31-February 1 meeting ended with the FED raising the benchmark interest rate by a quarter point, returning to a more standard rate hike size after one year of consecutive 75 basis point and half point increases.

At a press conference after the meeting, Fed Chairman Jerome Powell said a return to smaller rate hikes would allow for a more gradual effort to come to a possible standstill, and as the central bank nears the end of its rate hike cycle, officials spent this meeting “talking quite a bit about the way forward.”

But that meeting also preceded key data releases in January that showed unusually strong job gains and a less-than-expected slowdown in inflation.

This trend is expected to continue with the release of a report this week on how the Fed’s preferred inflation index performed in January.

The Central Bank uses the Personal Consumption Expenditures (PCE) price index to set the 2% inflation target. Economists polled by Reuters estimate that PCE, excluding the more volatile food and energy items, rose 4.3% year-on-year last month, a slight improvement from December’s 4.4% increase.

Louis Fed Chairman James Bullard told CNBC on Wednesday:

“The news is that the US economy is stronger than we previously thought…”

“Our risk right now is that inflation will not fall or accelerate again,” Bullard said, adding that it would require higher-than-expected rate hikes.

*Not investment advice.